TNAG-0647-FCO40-795-Study-of-labour-relations-in-Hong-Kong-by-Professor-H-A-Turn-1977 — Page 203

CONFIDENTIAL

HONG KONG: PROFESSOR TURNER'S REPORT ON A STUDY OF LABOUR RELATIONS

1. This is a fascinating report which is well worth reading in full though I think Ministers could skip the appendices. The underlying theme which runs through it all is that Hong Kong is sui generis in its social-political development and it seems to me that Professor Turner's reactions tend more to social reform than the need for a labour relations structure of the sort one should normally expect in a country or community with such a high degree of industrialisation. Even when he draws attention (paragraph 80 (ii)) to the "absolutely critical" gap in labour relations at the workplace level, he stresses that this needs a "quite distinctive approach". But Professor Turner himself clearly looks on it as an interim report and I have no doubt at all that HMG and the Government of Hong Kong would benefit if he pursued his studies.

2. Accordingly I endorse the Department's recommendations. as the TUC and CBI are concerned, I will explain to the Governor of Hong Kong when I see him next month that we have a clear commitment to let the TUC see what Professor Turner has produced. Subject to the OLA's views (which need not concern this submission), however, I would be inclined to stress to both organisations, and also in the OLCC meeting, that the conclusions are highly tentative and may well be subject to modification if and when Professor Turner continues his work.

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3. The question of financing Professor Turner is a little tricky. I would prefer the Department to pursue the possibility of financing direct from FCO funds, or from somewhere like the Ariel Foundation, while still testing the possibilities with ODM, on the overall assumption that the Hong Kong Government will in fact put up half the cost in some way. Mr Stewart and I have made a guess at an overall need for £10,000 from all sources,

DMummy

28 February 1977

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CONFIDENTIAL

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